Twitch Rethinks Ad Guidelines And Streamlining Monetization Opportunities Due To Streamer Backlash

Amazon.com, Inc's AMZN Twitch has swiftly retracted its recent ad guideline changes after facing vehement criticism from streamers.

The alterations, which imposed stringent restrictions on how streamers could monetize their channels, sparked outrage within the streaming community, as some of the rules dictated the maximum size of logos on-screen and prohibited the permanent display of sponsorships.

See Also: MrBeast Roars Against Twitch's Guidelines, Elon Musk Thumbs Up His Kick Plan

Twitch initially claimed the rules were being misinterpreted due to their vague wording but has now completely abandoned the controversial adjustments.

The live-streaming platform announced its decision to remove the guidelines through a Twitter thread, acknowledging that they were detrimental to both streamers and Twitch itself.

"Yesterday, we released new Branded Content Guidelines that impacted your ability to work with sponsors to increase your income from streaming. These guidelines are bad for you and bad for Twitch, and we are removing them immediately," the company said.

"Sponsorships are critical to streamers’ growth and ability to earn income. We will not prevent your ability to enter into direct relationships with sponsors — you will continue to own and control your sponsorship business," the company added.

Yesterday, we released new Branded Content Guidelines that impacted your ability to work with sponsors to increase your income from streaming. These guidelines are bad for you and bad for Twitch, and we are removing them immediately.

— Twitch (@Twitch) June 7, 2023

Under the rescinded guidelines, branded logos were only allowed to occupy three percent of the screen, while burned-in videos, prerecorded adverts and software-embedded commercials were strictly prohibited.

With Twitch's reversal, streamers are now granted the freedom to engage in these activities once again. This newfound freedom is especially crucial given that ad revenue and branded content constitute major revenue sources for streamers, particularly in light of Twitch's controversial 50/50 revenue split policy.

Read Next: Game Streaming Slowdown: Twitch, YouTube Gaming See Decrease In Hours Watched In 2022

Photo: Casimiro PT on Shutterstock